AI PCs are providing a revolution in the sector, giving users with many benefits and this provides the technology channel with opportunities to transform their value proposition, says Brandon Lieberthal, VP, PC Systems & Print Solutions – Europe at TD SYNNEX.
There have been many exciting evolutions for the PC, but there has not been one as revolutionary as the arrival of the AI-enabled PC. It is one of those rare events that has the potential to transform the industry. AI demand is projected to grow globally, and with the flow of AI PCs into the market this will only increase.
There are strong predictions for a steady rise in demand for AI PCs with a compound annual growth rate in the range of 15-20% over the next five years, in markets such as the UK, France, Germany and the Nordics. This, therefore, opens up new opportunities for the technology channel to transform their core value proposition for end users and vendors.
So, what makes these AI PCs so ground-breaking and what is the role of the channel?
Technology driving AI PCs
For the higher level of computing power, these AI PCs are built differently to traditional PCs. In addition to the central processing unit and graphics processing unit found in PCs, AI PCs have a new class of integrated AI processors, neural processing units (NPU), which can run at trillions of operations per second (TOPS). Indeed, the NPUs in the first batch of AI PCs run at 40 TOPS.
This performance enables AI PCs to run current and new types of AI apps that have been restricted to the cloud on the PC itself. This edge computing capability opens up momentous improvements in tasks including predictive typing, language translation, advanced graphics rendering and enables users to have a much more personalised experience. The early adopters of this technology can mainly be seen in software development, data analytics and the creative industries, where users can benefit from much faster processing speeds and efficient and smarter functionalities.
How does the channel fit in?
There is very much an exciting opportunity for partners to grasp. Not least how the PC market is going to be boosted by these new machines. With Canalys forecasting that 60% of all PCs sold will have AI processing capabilities by 2027, this creates opportunities for the technology channel. The ways that the potential of AI is recognised in an organisation requires a channel business to use a consultative mindset and help customers onboard the technology correctly. As such, the channel must develop the right skills and be educated about the ins and outs of AI PCs and the benefits this technology brings to their customers. The channel can act as a partner and advisor to their customers from day one.
Further, for the channel, AI PCs can deliver higher margins and open up new opportunities for cross selling. As there is likely to be AI development tools, industry-specific applications and productivity suites, the AI PC triggers a range of peripheral sales. These include external GPUs, advanced input devices and high-resolution monitors. Additionally, as these AI PCs work on the cloud, there is also potential for cloud services to support AI workloads and data storage solutions.
Looking at services which the channel can offer, this can range from managed devices to consultative and advisory opportunities. There is also scope for AI consulting and training, education and support opportunities which the channel can provide to end users. Channel partners are instrumental in the success of AI PCs across the European market.
Overcoming the objections
While AI PCs may bring benefits to users, there are likely to be some concerns from end users concerning this technology.
The initial cost of AI PCs is high, but partners need to help their business customers take a longer view on the potential benefits. AI PCs will drive efficiencies, so employees can focus on higher value tasks, and reduce operating costs at the same time. Businesses earn 13% return on investment of AI projects, which is more than double the average ROI sitting at 5.9%, according to IBM. So, it is a worthwhile investment for organisations. With the availability of leasing, financial and subscription models through the channel, it makes it much easier and affordable for enterprises to invest in AI PCs and reap the benefits.
Moreover, as some businesses are still trying to understand how AI itself works within their operations, understandably, they will have questions around how AI PCs fit into their current technology. However, with the support, training and education from the channel, they can help organisations when deploying these PCs in their operations and offer ongoing guidance. It is worth noting that there is no need for enterprises to overhaul their entire operations to deploy AI PCs.
As with all technology, there are privacy and security concerns, but there are several ways to overcome these worries. Businesses must implement end-to-end robust security policies and practices and ensure continuous monitoring for any and all threats. Making sure that only those that need access creates another layer of protection. It is also essential for organisations to adhere to all local and national regulations.
As technology changes, AI PCs have been positioned as the next innovation to transform the industry. AI demand is only predicted to grow in Europe and globally and this creates several opportunities for the channel to support end users in a different way. Through leveraging a comprehensive programme encompassing the tools needed to educate partners about the whole AI technology opportunity, provide specialist support and resources, and give them the means to enable success, partners can help their customers on their own AI journey. AI PCs are not the end of the revolution; they are just the beginning.
